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- **Strategic Repositioning Success**: Full-price channel comps turned positive for Michael Kors, driven by new accessories and footwear. 
- **Shareholder Return Plan**: $1B buyback program announced post-Versace sale, signaling confidence in future growth. 
- **Gross Margin Outlook**: FY27 gross margin expansion expected via tariff mitigation and strategic pricing. 
- **Challenges**: Outlet channel recovery lagging due to promotional pullback, but AURs improving. 
- **Regional Momentum**: Europe leading for Michael Kors, Jimmy Choo strong in North America. 
- **Tariff Mitigation**: FY27 to offset $85M tariff impact through higher full-price sell-throughs. 


**【CEO Summary Section】**
- **Strategic Initiatives**: CEO John Idol highlighted stabilization efforts for Michael Kors and Jimmy Choo, with full-price channel comps turning positive in Q2. Michael Kors' accessories (e.g., Hamilton Moderne) and footwear (e.g., new sneaker styles) drove strong full-price sell-throughs. 
- **Share Repurchase Program**: A $1 billion share buyback program was authorized, to begin in FY27, following the planned sale of Versace to reduce debt. 
- **Store Renovation Plan**: 50% of Michael Kors stores will be renovated over 3 years, with flagships like NYC's Jet Set Lounge featuring immersive experiences. 
- **Brand Momentum**: Global consumer database grew 9% for Michael Kors and 9% for Jimmy Choo, driven by influencer partnerships and runway shows. 
- **Challenges**: Outlet channel revenue declined due to reduced promotions and older product assortments, though AURs improved sequentially. 

**【CFO Financial Commentary】**
- **Q2 Results**: Total revenue $856M (-2.5% YoY), with Michael Kors (-1.8% YoY) and Jimmy Choo (-6.4% YoY). Gross margin 61% (-130bps YoY) due to tariffs. Operating margin 2.3% (-190bps YoY). 
- **Tax Impact**: Effective tax rate 112% due to valuation allowance, reducing EPS by $0.20. Full-year tax rate expected mid-teens. 
- **Balance Sheet**: Cash $120M, debt $1.8B. Post-Versace sale, net debt to drop to ~$1.6B. 
- **Guidance**: FY26 revenue $3.375B-$3.45B, FY27 targeting growth. FY26 gross margin ~60.5%-61%, with FY27 expansion via tariff mitigation. 
- **Q3 Outlook**: Revenue $975M-$1B, gross margin -200-250bps YoY, operating margin 7%-8%. 

**【Q&A Highlights】**
- **Outlet Strategy**: Michael Kors outlet AURs improving, but full recovery requires new product (Q3/Q4). Gen Z price sensitivity driving strategic pricing. 
- **Tariffs**: FY26 tariff impact $85M, FY27 to offset via higher full-price sell-throughs. Q3 gross margin hit by 200-250bps. 
- **Wholesale**: Q2 shipment timing shift ($20M), but POS improving. FY27 wholesale growth expected with partners focusing on entry luxury. 
- **Regional Growth**: Europe strongest for Michael Kors, China showing modest improvement. Jimmy Choo strong in North America, challenges in APAC. 
- **Team & Capital Allocation**: Interim CFO Raj Mehta leading; priorities: brand investment, debt reduction, and shareholder returns. 


Capri Holdings Limited (CPRI) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

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Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CPRI

CPRI fundamentals

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